HB1803 amends the Illinois Income Tax Act to create a new income tax credit called the Retaining Illinois Students of Engineering (RISE) credit. The credit is available to taxpayers that employ “qualified employees,” defined as engineers who earned a bachelor’s degree or higher from an accredited engineering program within the prior five years. The bill is designed to reward employers for hiring recent engineering graduates and to encourage those graduates to remain and work in Illinois.
The credit amount is based on compensation paid to the qualifying engineer during the taxable year. Employers may claim a credit equal to 10% of compensation paid to qualifying engineers who graduated from an Illinois institution, or 5% for qualifying engineers who graduated from an accredited engineering program outside Illinois. The credit applies to tax years ending on or after December 31, 2025, cannot reduce tax liability below zero, and any unused amount may be carried forward for up to five subsequent tax years.
In practical terms, the bill would reduce state income tax revenue for employers that hire recent engineering graduates, with the larger incentive aimed at retaining Illinois-educated talent. It would amend state tax law by adding a new Section 235 to the Illinois Income Tax Act and would affect businesses that employ engineers, especially firms competing for early-career technical workers.
The available context shows no recorded committee debate or votes, so there is no documented legislative opposition or support in the provided materials. Based on the bill text, the measure appears generally pro-business and workforce-development oriented, with a policy focus on talent retention and strengthening Illinois’s engineering pipeline. Any contention would likely center on the cost of the tax expenditure, whether the credit effectively influences hiring decisions, and the preferential treatment for Illinois graduates versus out-of-state graduates.
Impact
HB1803 would add a new refundable-style income tax credit structure to the Illinois Income Tax Act for employers of recent engineering graduates, directly affecting corporate and individual income tax liabilities under Section 201. It creates a new statutory incentive tied to compensation paid to engineers who graduated within five years, with a higher credit rate for Illinois-educated graduates, and allows unused credits to be carried forward for five years. The bill would primarily affect employers in engineering-intensive industries and would likely reduce state income tax collections to the extent credits are claimed.
Sentiment
The bill’s apparent purpose is broadly positive and economic-development oriented, aiming to retain Illinois engineering graduates and encourage employers to hire them. Because there are no committee transcripts or votes provided, there is no recorded public sentiment in the materials. On its face, the proposal seems likely to appeal to supporters of workforce retention, STEM education, and business tax incentives.
Contention
No specific contention is documented in the provided record, but the likely points of debate are the fiscal impact of the credit, whether it meaningfully changes employer behavior, and the fairness of giving a larger tax benefit for graduates of Illinois institutions than for similarly qualified out-of-state graduates. Critics might also question whether the credit is too narrow, benefiting only employers who hire recent engineers, while supporters would likely argue it helps keep technical talent in Illinois and strengthens the state’s innovation economy.
Requiring postsecondary educational institutions to regularly review and update accreditation policies, prohibiting accrediting agencies from compelling such institutions to violate state law and providing a cause of action for violations thereof.